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Its seems that, based on the positive media reaction to this, AirBnB has done everything right from the start: Everyone is piling on them for screwing up the i

Its seems that, based on the positive media reaction to this, AirBnB has done everything right from the start: Everyone is piling on them for screwing up the initial reaction to EJ, by not going far enough in offering to help her. But AirBnB didn't do much to help Troy (from the TechCrunch post) 2 months ago, and that story didn't blow up in to a PR disaster. They simply gave him a few free nights and he was happy. So, it is impossible to tell if any given customer support issue is a potential "PR-nightmare". If AirBnB had over-reacted and offered Troy thousands of dollars (as was being suggested for EJ), they would have lost out - because Troy was happy with just a few free nights in AirBnB credit. How were they supposed to know that EJ (1) wouldn't be happy with what Troy received (2) Would make a scathing blog post and (3) That blog post would go viral. They couldn't have. So, if you are a wagering person, it seems like the best course of action is to do exactly what AirBnB did: offering minimal support and grow until something really bad happens. Then come out swinging with a big apology and a big offer of support and restitution. Since it seems like the media and public are willing to forgive AirBnB (judging by the reaction to today's announcement), this course seems like it may have been optimal compared to over-helping people like Troy. Put another way: PR distasters are recoverable if you say you are sorry and ask forgiveness. Being too careful upfront and limiting your growth curve is not forgivable.

techiferous 15y ago
"may have been optimal" I follow your reasoning, but this approach is optimized for Airbnb alone. The trick is to find an approach that maximizes both Airbnb's business goals and the happiness of the customers.
- OpenAmazing 15y ago
  True. I should have prefaced with "from a business standpoint".
  - techiferous 15y ago
    I would word it "from a self-interested standpoint", which is hopefully different than "from a business standpoint". I prefer to live in a world where businesses aren't laser-focused on just their own interests. Ideally, a CEO would try to align all of the goals of the parties relating to the business so that the dynamic is synergistic, not win-lose.
BernieEls 15y ago
> "If AirBnB had over-reacted and offered Troy thousands of dollars (as was being suggested for EJ), they would have lost out - because Troy was happy with just a few free nights in AirBnB credit." Even from a "business standpoint" I do not feel they would have lost out. Because they would have avoided the EJ fiasco, and still garnered the media and public appreciation from the apology, support, and restitution to Troy. The company may not have been able to know the story of EJ, specifically, would take this path. But it was predictable that at some point a vandalism or safety issue would eventually get picked up in the media.

techiferous 15y ago

"may have been optimal" I follow your reasoning, but this approach is optimized for Airbnb alone. The trick is to find an approach that maximizes both Airbnb's business goals and the happiness of the customers.

OpenAmazing 15y ago
True. I should have prefaced with "from a business standpoint".
- techiferous 15y ago
  I would word it "from a self-interested standpoint", which is hopefully different than "from a business standpoint". I prefer to live in a world where businesses aren't laser-focused on just their own interests. Ideally, a CEO would try to align all of the goals of the parties relating to the business so that the dynamic is synergistic, not win-lose.

BernieEls 15y ago

> "If AirBnB had over-reacted and offered Troy thousands of dollars (as was being suggested for EJ), they would have lost out - because Troy was happy with just a few free nights in AirBnB credit." Even from a "business standpoint" I do not feel they would have lost out. Because they would have avoided the EJ fiasco, and still garnered the media and public appreciation from the apology, support, and restitution to Troy. The company may not have been able to know the story of EJ, specifically, would take this path. But it was predictable that at some point a vandalism or safety issue would eventually get picked up in the media.